Booklet three: Weimar Republic- Economic crisis and government response 1918-1923

Question	Answer
What was Streseman's solution to hyperinflation?	Ended the policy of passive resistance and was granted emergency powers in 1923. He established a new currency 'Rentenmark' which halted hyperinflation
Which years were the 'Golden Years'?	1925-1928
What were the political consequences of Hyperinflation?	The use of wide ranging emergency powers set a dangerous precedent. The stab in the back myth remained powerful propaganda for the Right wing. Weimar lost the trust of the middle classes who lost everything.
Living standards in Weimar?	90% of all children aged 2-6 were undernourished Many war veterans and families The government instituted a widespread welfare system - in 1927 an unemployment insurance law was introduced 10% unemployment in 1926
Who suffered most from hyperinflation?	The middle class, they were angered by rising wages for the lower class whilst theirs stayed the same. Agricultural workers also suffered from a decline in food prices and a general decline in living standards.
What were the fundamental economic problems?	World economic conditions did not favour Germany. The changing balance of the population. Savings and investment discouraged. Government finances.

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